Most popular questions from this chapter
Prepare the journal entry to record Autumn Company’s issuance of 63,000 shares of no-par value common stock assuming the shares:
a. Sell for \(29 cash per share.
b. Are exchanged for land valued at \)1,827,000
Harriet Moore is an accountant for New World Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the past six months, Harriet has noticed that a lot of funds have been spent on a particular project for a new drug. She hears “through the grapevine” that the company is about to patent the drug and expects it to be a major advance in antibiotics. Harriet believes that this new drug will greatly improve company performance and will cause the company’s stock to increase in value. Harriet decides to purchase shares of New World to benefit from this expected increase.
Required
What are Harriet’s ethical responsibilities, if any, concerning the information she has learned through her duties as an accountant for New World Pharmaceuticals? What are the implications of her planned purchase of New World shares?
General Ledger assignment 11-1 is adapted from Problem 11-2A, including beginning equity balances. Prepare journal entries related to treasury stock, cash dividends, and net income. Then, prepare the statement of retained earnings and the stockholders’ equity section of the balance sheet.
Question:
Weiss Company is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders’ equity during its first year of operations.
Account and explanation | Debit | Credit | |
A | Cash Common Stock, \(1 Par Value Paid-In Capital in Excess of Par Value, Common Stock | 120,000 | 3,000 117,00 |
B | Organization Expenses Common Stock, \)1 Par Value Paid-In Capital in Excess of Par Value, Common Stock. | 40,000 | 1,000 39,000 |
C | Cash Accounts Receivable Building Notes Payable Common Stock, \(1 Par Value Paid-In Capital in Excess of Par Value, Common Stock | 13,300 8,000 37,000 | 18,300 800 39,200 |
D | Cash Common Stock, \)1 Par Value Paid-In Capital in Excess of Par Value, Common Stock | 60,000 | 1,200 58,800 |
Required
1. Explain the transaction(s) underlying each journal entry (a) through (d).
2. How many shares of common stock are outstanding at year-end?
3. What is the amount of minimum legal capital (based on par value) at year-end?
4. What is the total paid-in capital at year-end?
5. What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $ 283,000?
Who is responsible for directing a corporation’s affairs?
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